EANS-News: Sunways AGPossible return to profit zone from 2014 onwards

30.08.2012 – 17:41

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Annual & Special Corporate Meetings/Company Information/Earnings Forecast
Subtitle: - Structural problems in the industry affect sales revenues and
earnings in 2012
- Sunways is to become a Technology Excellence Center and Inverter Competence
Center for the LDK Group
- Market entries in Canada, the USA and China planned for the next few years
Konstanz (euro adhoc) - Konstanz/Germany, 30 August 2012 - The Sunways Group
(SWW:GR, SWWG.DE, ISIN DE0007332207) believes it will again be able to generate
operating profits from 2014 onwards. This improvement of the financial
situation is to be achieved mainly through sales and cost synergies resulting
from the intensified cooperation with the Chinese LDK Solar Group. Following the
public takeover offer, LDK Solar Germany Holding GmbH is the new majority
shareholder of the Konstanz-based photovoltaics manufacturer. "At present, we
have to cope with individual but mostly also with industry-related structural
problems. The pace of consolidation in the photovoltaics industry has
accelerated significantly", said Michael Wilhelm, CEO of Sunways, at the
company's general meeting held in Singen today. Wilhelm explained the reasons
for the major losses incurred in the fiscal 2011 but also emphasized: "Due to
the partnership with the LDK Solar Group, the prospects of the technology
specialist Sunways are much better than they would be under a stand-alone
strategy. In terms of operating profit, we plan to report black figures again in
2014."
In the area of solar modules, Sunways intends to mainly build on its strong
brand and service quality in the future cooperation with LDK Solar - to the
advantage of both parties who so far serve different customer segments. With
respect to solar cells, Sunways is to play a major role as a Technology
Excellence Center within the LDK Solar Group. Basis for this will be the
photovoltaics specialist's extensive know-how relating to the development of
high-efficiency silicon solar cells and a widespread network to internationally
leading academic and research institutions in Germany, in particular in the
Freiburg/Konstanz region. Finally, Sunways is to become Competence Center for
solar inverters within the LDK Solar Group. Wilhelm, Chairman of the Management
Board (CEO), sees a strong potential in this context. A joint market entry with
LDK Solar is planned in Canada, the USA as well as in China. "Five years from
now, Sunways and LDK Solar plan to be among the largest three manufacturers of
solar inverters worldwide", predicted Wilhelm.
The systematic development of new growth markets plays a key role for the
Sunways Group. "In the future, volume growth in photovoltaics will increasingly
be generated abroad, while holistic energy generation, storage and management
systems will become more important in Germany", he emphasized. Medium-term
growth expectations mainly concentrate on the Chinese market. "The Chinese
market can only be conquered together with an experienced local partner - whom
we have found in LDK Solar", said Wilhelm.
The past year was extremely difficult for the entire German solar industry.
"This is also reflected in our financial statements", explained Wilhelm.
Consolidated sales revenues of Sunways AG decreased by about 50 percent to EUR
116.2 million. This was due to the declining demand in the company's former core
markets as well as to the dramatic deterioration of prices for components for
photovoltaic systems, in particular solar modules. There was a negative
operating result (EBIT) of EUR 66.1 million (2010: EUR +15.0 million).
Major non-recurrent and extraordinary expenses contributed to the losses
incurred in the fiscal 2011: provisions for impending losses under wafer
purchase contracts and various agreements with manufacturers relating to
inverters, provisions for warranties and fixed asset impairments. In all, the
operating result of Sunways AG for the fourth quarter of 2011 was affected by
expenses of about EUR 44.0 million of which approx. EUR 34.0 million related to
non-recurrent expenses. Thus the consolidated net loss for the full fiscal year
amounted to EUR 62.1 million (2010: consolidated net income of EUR 9.3 million).
A positive aspect was that the export quota of Sunways had grown in the past
year. A total of 45.4 percent of consolidated sales were generated abroad (2010:
29.2 percent).
The Management Board's prognosis for the current fiscal year is cautious. "In
the fiscal year 2012, we want to stabilize the development of our sales volumes
and revenues and reduce our losses as compared to 2011", said Wilhelm. In view
of the steadily changing political and economic framework conditions, the
Management Board believes a more precise prognosis cannot be given at present.
At the Annual General Meeting, the shareholders approved all motions on the
agenda. The following resolutions were passed:
- The creation of new authorized capital and possible exclusion of the
pre-emptive rights of shareholders as well as the amendment to paragraph 5,
subparagraph 2 of the articles of incorporation were resolved.
- Bing Zhu, Chief Strategy Officer of the LDK Solar Group, was appointed to the
three-member Supervisory Board as representative of the majority shareholder.
- The actions of the Management Board and Supervisory Board in the past fiscal
year were formally approved and the audit company PricewaterhouseCoopers was
again appointed as auditor.
This press release is also available on hhtp://www.sunways.eu/en or
http://www.presseportal.de/pm/57666/sunways_ag.
Forward-looking statements
This press release contains statements relating to the future business
development of Sunways AG that are based on management assumptions and estimates
made at the time of publication. Should the assumptions underlying the prognoses
fail to be fulfilled, actual events may vary substantially from forward-looking
statements. Uncertainties include changes in the political, legal, economic and
business environment, exchange and interest rate fluctuations as well as the
behaviour of competitors and other market participants. Sunways does not intend
and is not under any obligation to update forward-looking statements on an
ongoing basis as these are exclusively based on the circumstances prevailing as
of the date of publication.
About Sunways
Sunways AG, Konstanz/Germany, stands for consistent use of solar energy to
secure long-term energy supply of man in an efficient and sustainable manner.
Sunways offers technological competence, performance and highest quality - from
single components to complete solar systems.
Since its foundation in 1993, Sunways AG evolved into a technology leader in the
photovoltaics industry serving international markets. With silicon-based solar
cells, inverters, solar modules and solar systems, the company offers all
components required for high-yield photovoltaic power generation. With
photovoltaic solutions tailored to customers' needs (transparent and coloured
solar cells, building- integrated photovoltaic installations), Sunways turns
exceptional ideas into reality.
Sunways Production GmbH in Arnstadt/Germany is a subsidiary of Sunways AG; in
addition, the group has own branch offices in Barcelone/Spain and Bologna/Italy.
In 2011, Sunways AG with about 330 employees realised sales of around EUR 115
million.
The shares of Sunways AG are listed at the Frankfurt Stock Exchange (SWW:GR,
SWWG.DE, ISIN DE0007332207).
For further information, please visit www.sunways.eu/en.
About LDK Solar
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer
of photovoltaic products. LDK Solar manufactures e.g. polysilicon, mono and
multicrystalline wafers, solar cells, and solar modules. LDK Solar's
headquarters and principal manufacturing facilities are located in Hi-Tech
Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China.
For more information about LDK Solar and its products, please visit
www.ldksolar.com.
Further inquiry note:
Dr. Harald F. Schäfer
Head Corporate Communications and Investor Relations
Tel.: +49 (0)7531 996 77-415
E-Mail: communications@sunways.de
end of announcement euro adhoc
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company: Sunways AG
Macairestr. 3 - 5
D-78467 Konstanz
phone: +49 (0)7531 99677 0
FAX: +49 (0)7531 99677 10
mail: info@sunways.de
WWW: http://www.sunways.eu/de
sector: Alternative energy
ISIN: DE0007332207
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English